Petrobras says to start tests of marine fuel ahead of IMO 2020

Brazil’s state-led Petrobras will be running tests from June to prepare its refineries to comply with the International Maritime Organization’s 2020 sulfur cut in bunker fuel, it said.

“During the period of tests, the marine fuels to be offered in the Port of Santos most likely will contain a lower viscosity,” Petrobras said in a statement.

The maritime industry has been adjusting for the upcoming IMO 2020 sulfur cap on bunker fuel to 0.5% from the current 3.5%, effective January 1.

Petrobras said it guarantees the ISO 8217:2010 availability, but will be unable to know precisely the viscosity of the products beforehand to be offered.

The Platts bunkers assessment for the Brazilian port of Santos assessment has been trending higher since the beginning of the year, with the marker up nearly 21%,or $71, since January 2. S&P Global Platts assessed Santos $4 higher at $417/mt delivered basis Thursday. MGO pricing has also moved higher since the beginning of the year rising $145, almost 23%.

Petrobras also informed customers the industry that effective June 1, it will discontinue the sales of RMK500 at Santos.
Source: Platts